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Connecticut broker Linda represents both the buyer and the seller in the same transaction with the written informed consent of both parties. During negotiations, the seller asks Linda to disclose the buyer's maximum price. How should Linda handle this request under Connecticut dual agency rules?

Correct Answer

C) Linda must refuse to disclose confidential information about either party and maintain neutrality

Under Connecticut dual agency, the broker owes duties to both clients simultaneously. A core limitation of dual agency is that the agent cannot disclose one party's confidential information—such as the buyer's maximum price—to the other party. Linda must maintain neutrality and refuse to share confidential information belonging to either client. This is a fundamental restriction that both parties consent to when they agree to dual agency.

Answer Options
A
Linda must disclose the buyer's maximum price to the seller because the seller is her client
B
Linda may disclose the buyer's maximum price only if the buyer also consents in writing
C
Linda must refuse to disclose confidential information about either party and maintain neutrality
D
Linda should withdraw from the transaction immediately upon receiving this request

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Related Topics & Key Terms

Key Terms:

dual_agencyconfidentialityneutralityfiduciary_duties

Related Concepts

The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.

In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

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